Legarda confident economy will become more robust

By: Julius N. Leonen - @inquirerdotnet

INQUIRER.net / 07:57 PM March 06, 2018

Loren Legarda

Sen. Loren Legarda (File photo from Philippine Daily Inquirer)

Sen. Loren Legarda on Tuesday expressed confidence that the Philippine economy would become more
robust after an online report put the country at the top of the best countries in Southeast Asia to invest
in.

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ECONOMY

Legarda confident economy will become more robust

By: Julius N. Leonen - @inquirerdotnet

INQUIRER.net / 07:57 PM March 06, 2018

Loren Legarda

Sen. Loren Legarda (File photo from Philippine Daily Inquirer)

Sen. Loren Legarda on Tuesday expressed confidence that the Philippine economy would become more
robust after an online report put the country at the top of the best countries in Southeast Asia to invest
in.

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Legarda, chairperson of the Senate Committee on Finance, cited the report published by US News which
placed the Philippines on the No. 1 spot of the best Southeast Asian countries to invest in.

“In contrast to declining inflows of foreign direct investment (FDI) to the Southeast Asia as a whole, the
Philippines continued to perform well, according to United Nations data,” the report said.

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“We are gradually seeing the positive effect of the administration’s sound economic policies. I laud the
efforts of both the public and private sector, especially the President and his economic team,” Legarda
said in a statement.

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“But more needs to be done in sustaining the inflow of investments in our country that will usher in
more local jobs especially in the provinces,” the senator noted.

The Department of Trade and Industry’s Board of Investments (DTI-BOI) approved P131.6 billion worth
of investment projects in the first two months of 2018 alone, Legarda said.

Moreover, the senator noted that in 2017 the BOI posted an all-time high of P617 billion in committed
investments, comprising of 426 projects that are expected to generate around 76,065 jobs upon full
operations.
Legarda said the 65-percent increase in investments was recorded in areas outside of the National
Capital Region (NCR).

“All of these show the growing confidence of both local and foreign investors in our economy and could
only result in growth also in the countryside and of our people,” the senator explained.

The investments were also seen to “further improve” with the government’s “Build, Build, Build”
program, she said.

“We see this to further improve especially with the government’s infrastructure development agenda,
the legislature’s support through measures that will improve government processes and ensure ease of
doing business in the country, and maintaining peace and order,” she said.

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Legarda then cited her proposed Innovation Act, which was approved by the Senate on third and final
reading.

The measure aims to mandate all government agencies and local government units to “improve
efficiencies in addressing public transactions that impact on innovation, including reducing the number
of days and costs of starting or expanding a business.”

“We see a very promising future for our country. In fact, our strong macroeconomic performance, solid
domestic demand, inflow of foreign direct investments, and consistent fiscal policies geared towards a
sustained decline in the gross general government debt ratio invite a more robust trade relations with
other countries,” Legarda said.

“But all of these should be aimed at not only achieving impressive growth statistics but also, and more
importantly, bringing the fruits of these investments to all Filipinos – to lift the poor out of poverty and
improve the lives of all our citizens,” the senator stressed.
Read more: http://business.inquirer.net/247175/legarda-confident-economy-will-become-
robust#ixzz59sE92fq6

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BPI improves product offerings for OFWs

By: Doris Dumlao-Abadilla - Reporter / @philbizwatcher

Philippine Daily Inquirer / 05:20 AM February 17, 2018

Ayala-led Bank of the Philippine Islands (BPI) has sweetened its suite of deposit product offerings for
overseas Filipinos, collectively responsible for about $2.3 billion in monthly foreign exchange inflows to
the Philippine economy.

BPI has launched a new product called BPI Pamana Padala, which bundled deposits with free insurance.
Another new offering, BPI Padala Moneyger, waives the minimum maintaining balance for active deposit
accounts of those who receive remittances at least four times a year.

Apart from allowing overseas Filipinos to electronically transfer funds directly to the BPI accounts of
their loved ones, BPI Pamana Padala account carries a unique feature: The remittance continuation plan
which provides free 90-day personal accident insurance of P100,000 and life insurance coverage of up to
P300,000.

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“Overseas workers all strive to give their loved ones back home a bright future. They are our modern-
day heroes who take risks to provide for their families. We also understand that despite their increased
ability to financially provide for the family, OFWs (overseas Filipino workers) have to live with the
nagging question whether their families will be able to take care of themselves should anything
unfortunate happen to them,” Simon Paterno, BPI executive vice president and segment head of
financial products and alternative channels, said in a statement.

“To address these concerns, we launched BPI Pamana Padala, which not only gives the convenience of
transferring funds anytime and anywhere, but also comes with a back-up plan for the peace of mind of
the OFW. Through this, we hope to give the protection that OFWs need and safeguard the future of
their families,” Paterno added.

Through its free remittance continuation benefit, the overseas Filipino will get a free life insurance
coverage of up to P300,000. The overseas Filipino will be entitled to this as soon as there are four
remittances to the Pamana Padala account within a 12-month period.

On the other hand, BPI Padala Moneyger was specially designed for those who receive remittances from
abroad.

With BPI Padala Moneyger, beneficiaries are now the managers of the remittance sent. With this,
beneficiaries have a safe, secure and efficient way of receiving the remittance. The account holder can
use BPI’s electronic banking services such as 24/7 online banking and ATMs to pay bills and transfer
funds. BPI Padala Moneyger has no maintaining balance as long as there are four remittances made to
the account in a year.

Money sent home by overseas Filipinos through banks reached $28.1 billion last year, up by 4.3 percent
from the previous year, based on data from the Bangko Sentral ng Pilipinas.

The bulk of cash remittances for the year came from the US, UAE, Saudi Arabia, Singapore, Japan, United
Kingdom, Qatar, Kuwait, Germany and Hong Kong, accounting for 80.1 percent of the total.
Read more: http://business.inquirer.net/246101/bpi-improves-product-offerings-ofws#ixzz59sEvDhik

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BSP starts cutting banks’ reserve requirement

Philippine Daily Inquirer / 05:30 AM February 16, 2018

The country’s monetary authority yesterday took the first small step toward its stated goal of freeing up
more cash from banks’ vaults, which was seen to help fund the growing Philippine economy.

The move will free up an estimated P90 billion from bank vaults, which they could then use productively
as loans to corporations, consumers or investments in equity or debt securities.

Read more: http://business.inquirer.net/246071/bsp-starts-cutting-banks-reserve-

requirement#ixzz59sFkQT1u

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ECONOMY

ING expects PH economy to grow by 6.7% during Duterte’s 6-year term

By: Doris Dumlao-Abadilla - Reporter / @philbizwatcher

Philippine Daily Inquirer / 05:30 AM February 12, 2018

The Philippine economy may grow at a faster pace of 6.7 percent during the six-year term of the Duterte
administration as government spending intensifies with the rollout of big-ticket infrastructure projects,
an economist at Dutch financial giant ING said.

This will be an improvement from the 6.1 percent trend growth rate under the Aquino administration
and 4.8 percent under the Macapagal-Arroyo administration.

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ING’s latest forecast was also an upgrade from its previous trend growth projection for the Philippines of
6.5 percent for 2017 to 2022.

“You see, government spending, infrastructure spending and public construction are quite strong and
we think the resolve there is quite solid that spending on both government headline basis and
infrastructure spending will continue,” ING Philippines economist Joey Cuyegkeng said.

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The country’s economic performance last year also showed a significant improvement, he said.

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The economy grew by 6.7 percent in 2017, slower than 6.9 percent in 2016 but still respectable in the
absence of election spending that provided a boost in the previous year.

The only risk so far continues to be on trade balances, Cuyegkeng said, referring to the widening
external deficits mostly due to the importation of capital goods needed to fuel an expanding economy.

ING also sees the Bangko Sentral ng Pilipinas raising its key interest rates by a total of 75 basis points this
year to curb upward pressure on consumer prices.

If the BSP hikes rates at its next monetary in March, it will be the first time since September 2014 that
the central bank will take a hawkish move.

Read more: http://business.inquirer.net/245812/ing-expects-ph-economy-grow-6-7-dutertes-6-year-

term#ixzz59sGPvkyg

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Economy grows 6.7% amid BPO slowdown

By: Ben O. de Vera, Doris Dumlao-Abadilla - @inquirerdotnet

Philippine Daily Inquirer / 07:27 AM January 24, 2018

Ernesto Pernia

Socioeconomic Planning Secretary Ernesto M. Pernia (File photo by JOAN BONDOC / Philippine Daily
Inquirer)
The Philippine economy, as measured by the gross domestic product (GDP), grew 6.7 percent in 2017,
among the fastest in the region despite a slowdown in the business process outsourcing (BPO) industry.

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In the fourth quarter, GDP grew at a slower rate of 6.6 percent, a pace similar to that a year ago but
slower than the 7-percent expansion in the third quarter.

GDP, the total value of goods produced and services rendered in a given period, does not measure well-
being or inequality.

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The economy grew last year, though slower than the 6.9 percent posted in 2016, even as more Filipinos
said they experienced hunger last December, indicating that the benefits of economic expansion did not
trickle down to the poor. (See story on Page A3.)

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News of the GDP expansion also came in the wake of an Oxfam report that the richest 1 percent
cornered 82 percent of the wealth generated in 2017, while the poorest half of humanity got nothing.
Socioeconomic Planning Secretary Ernesto M. Pernia said the GDP growth last year was the fastest in
the region after China’s 6.9 percent and Vietnam’s 6.8 percent.

“The [growth] was good but lower than expectations,” said Jonathan Ravelas, chief strategist at the
country’s leading lender BDO Unibank.

Ravelas, however, said “the recovery in consumption and further improvement in government spending
highlighted the underlying strength of the economy.”

Growth slightly slowed last year in the absence of election-related spending that boosted growth in
2016, according to Pernia.

He noted that GDP growth rates in 2005 and 2011—both postelection years—dove deeper to 4.8
percent from 6.7 percent in 2004 and to 3.7 percent from 7.6 percent in 2010, respectively.

“You can see that our decline is really very moderate at 0.2 percent of 1 percentage point,” he said.

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Pernia acknowledged that the BPO industry, worth $23 billion and employing 1.15 million people, was a
“major contributing factor to this decline.”

The sector, which has become a major pillar of the Philippine economy, includes call centers and offices
that carry out such functions for overseas companies as accounting, medical and legal transcription,
software design, animation and even architecture.
Read more: http://business.inquirer.net/244684/economy-grows-6-7-amid-bpo-
slowdown#ixzz59sH6tTTe

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HEADLINES

Study: Businessmen’s faith in PH economy unwavering

By: Roy Stephen C. Canivel - @inquirerdotnet

Philippine Daily Inquirer / 05:01 AM January 09, 2018

Business leaders’ faith in the Philippine economy remains strong, even more bullish than the average
optimism in the global economy, according to the latest quarterly International Business Report.

Grant Thornton’s business survey for the fourth quarter of 2017 showed optimism level in the Philippine
economy reached 86 percent, higher than the global average of 58 percent. This is also higher than the
84 percent recorded in the previous quarter.

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The fourth quarter figure is the second highest in 2017, following the Jan.-Feb. data which showed an
optimism level of 98 percent. The survey covered 2,500 businesses in 36 economies.

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Businessmen’s expectations in revenue increases, profitability and employment, among others, were
also high.

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Marivic Españo, chair and CEO of P&A Grant Thornton, attributed the bullishness to the passage of the
Tax Reform for Acceleration and Inclusion (TRAIN) bill, which serves as the first comprehensive tax
reform package under the Duterte administration.

Passed in December last year, the TRAIN Act lowers the personal income tax, but in its place are higher
consumption taxes in various products such as sweetened beverages, fuel and car purchases.

Still, government officials said 99 percent of income tax payers would benefit from the TRAIN law.
Critics, on the other hand, have often described some of its provisions as anti-poor.

“The results of the survey show that businesses are very confident in the economy. For one, the recent
passage of the first tranche of tax reforms is expected to support public spending and investments in
infrastructure and social services which, in turn, will create more opportunities for businesses,” said
Españo.

Optimism among business leaders in Asia Pacific reached 58 percent, marking a historic high as the
latest quarterly finding jumped 17 percentage points.

“Confidence has boomed in Asia Pacific, reaching its highest peak in the history of the [report]. While
China has experienced growing levels of optimism over the past year or so, Japan’s break into positive
territory is a real sign of change in the region,” Españo said.
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Read more: http://business.inquirer.net/243764/study-businessmens-faith-ph-economy-

unwavering#ixzz59sHahGx4

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PH ’18 growth seen at minimum 6.8%

By: Doris Dumlao-Abadilla - Reporter / @philbizwatcher

Philippine Daily Inquirer / 05:11 AM January 08, 2018

The Philippine economy is likely to grow by at least 6.8 percent this year on the back of robust domestic
consumer spending and favorable global economic growth, BDO Unibank chief strategist Jonathan
Ravelas said.

The projected gross domestic product (GDP) growth rate for this year is seen to build on the estimated
6.7 percent growth in 2017.

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With greater purchasing power for consumers and intensified spending for infrastructure following the
passage of the Tax Reform for Acceleration and Inclusion (TRAIN) law, the projected growth rate is seen
better than the trend growth rate seen in previous years.
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TRAIN mandates a reduction in personal income taxes, increasing people’s take-home pay while also
imposing higher excise taxes on petroleum, automobiles, coal, mining, tobacco and numerous financial
transactions alongside new excise taxes on sugary drinks and cosmetic procedures.

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The country’s trend growth rate was at an average of 6.1 percent from 2011 to 2016 or under the term
of President Benigno Aquino. During the nine-year Arroyo administration, trend growth rate was at 4.8
percent while trend growth rates during the Estrada, Ramos and Corazon Aquino regimes were at 2.3
percent, 3.1 percent and 3.4 percent, respectively.

The global economy, Ravelas said, was characterized by a synchronized upturn, continuing policy
normalization or increases in interest rates from postglobal financial crisis lows and rising commodity
prices.

The economist said the global upturn would likely boost the country’s economic growth rate to 6.8
percent. At the same time, he said the passage of TRAIN would boost consumption while more
structural reforms would likely be implemented by the Duterte administration in the next 12-18 months.

Overall, he said the Philippine macrothemes were attractive demographics, continued pursuit of
structural reforms and sound macroeconomic fundamentals.
The key risks this year, Ravelas said, were geopolitical tensions, the pace of the US Federal Reserve’s
increase in interest rates and US inflation rates as well as the pace of Philippine government spending
and local monetary policy.

The Philippines has remained among Asia’s fastest growing economies, posting a year-on-year GDP
growth of 6.9 percent in the third quarter of 2017, outperforming the consensus forecast of 6.6 percent.
This brought average nine-month growth last year to 6.7 percent, despite coming from a high base in
2016—a presidential election year—during which GDP grew by 6.9 percent for the full year.

Growth also exceeded expectations, given that a band of Islamic extremists affiliated with the ISIS
terrorist group wreaked havoc on Marawi, the capital city of Lanao del Sur in Mindanao.

Read more: http://business.inquirer.net/243701/ph-18-growth-seen-minimum-6-8#ixzz59sIBZGmP

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